Rents Fell In October As Election Heralds Change

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Multifamily and single-family rents fell in October as supply growth continues to delineate the direction of rents by metro

Multifamily and single-family rents fell in October as supply growth continues to delineate the direction of rents by metro, Yardi Matrix says In the Multifamily October Report.

“At the same time, the drop in starts presages another wave of rent growth in 2026 and beyond. Meanwhile, the market has begun to anticipate changes from the new administration in 2025,” the report says.

Highlights of the report

  • As the market prepares for a change of administration and policies, multifamily advertised rents fell $3 in October to $1,748. Year-over-year growth, 0.9% in October, has been range-bound between 0.7% and 0.9% since January.
  • The regional dividing line caused by supply growth continues. In the Matrix top 30 metros, the top 11 metros for rent growth are all in the Northeast, Mid-Atlantic and Midwest, while the bottom nine are all in the Southeast or Southwest, where deliveries are high.
  • Single-family rental rates had their worst performance in years in October, as advertised rents fell $8 nationally to $2,164, dropping the year-over-year growth rate 30 basis points to 0.3%. Like multifamily in general, high-supply markets are feeling a (likely temporary) pinch.

Demand strong as occupancy drops

Through September 2024, 329,000 apartment units have been absorbed, putting the market in line for one of its better recent years.

Supply has grown slightly more than absorption, prompting the U.S. occupancy rate for stabilized properties to drop 10 basis points to 94.7%.

“While it’s too soon to forecast specific policy changes, financial markets braced for higher inflation owing to Trump’s promise to increase tariffs on many imported goods. The 10-year Treasury rate rose 20 basis points to 4.45% during the day after the election. Higher Treasury rates are an impediment to transaction activity and make it more difficult to refinance underwater mortgages,” Yardi Matrix writes in the report.

Read the full report here.

About Yardi Matrix

Yardi Matrix researches and reports on multifamily, office and self-storage properties across the United States, serving the needs of a variety of industry professionals. Yardi Matrix Multifamily provides accurate data on 18+ million units, covering more than 90 percent of the U.S. population. Contact the company at (480) 663-1149.

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